Crypto

Declaring Cryptocurrencies: New Recommendations

Those of you who have read this article and own cryptocurrencies know how difficult it is to declare transactions made by them on a tax report. To make matters worse, today there is no way to declare capital losses, which seems not very logical for those who invest in these virtual currencies. Last June, MP Pierre Person (Paris) made several recommendations on this issue. Here is a summary.

Report over 200 pages

This is a detailed report presented by the MP for Paris, Pierre Person, to the MPs. This follows another document created in 2019 regarding virtual currencies. This time, the theme observed in his lines is: Cryptocurrency as a matter of sovereignty and economic, financial and monetary competitiveness. According to the findings of this report, France is overseeing the development of future assets that will become a major element of economic development in the coming years. Like-minded people would do well to invest in them today. But before that, it is better to learn everything about cryptocurrency futures in order to have a clear idea of ​​what to buy and what to avoid.

However, it should be noted that this document is not neutral. The avowed goal of Pierre Person is to promote cryptocurrencies so that the government takes a closer look at them and takes its place in the market before it becomes impossible. He suggests that as more and more payments are made in the form of cryptocurrencies, it is not normal that the government does not take this into account and does not care about it.

Overview of Declarative Constraints

On a purely legal level, Pierre Person proposes to reconsider the way cryptocurrencies are treated in order to equate them with traditional assets. This is not the first time such a proposal has been made. Indeed, this has been discussed in Parliament in connection with the Finance Bill for 2022. Obviously, it will be considered to create the next bill for 2023. At the moment, each cryptocurrency transaction must be declared separately.

Since major credit cards now accept payments in these currencies, some people have to go through a monstrous job just to fill out their tax returns. Moreover, it prevents people with crypto assets from using them for their purchases, which Pierre Person sees as the opposite of what should be; incentive to move more and more towards virtual currencies.

Inability to report capital losses on cryptocurrencies

Finally, the last issue, which is not least addressed in this document, is the impossibility of declaring capital losses in virtual currencies. While cryptocurrencies have lost almost 50% of their value this year, those who have lost a lot of money there should be able to claim those losses. However, this is not the case today.

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